Bring A Relief Package Of 175 Billion In Upcoming Budget: Finance Committee
May 22, 2020 | Investopaper
The Finance Committee of the House of Representatives has suggested the government to announce a relief package of 5 percent of the estimated GDP for the areas affected by COVID-19. After a week-long discussion with stakeholders, the committee has put forward such a proposal to keep the economy afloat and prevent further negative impact. The committee has also asked to provide concessional loans, waiver of interest, extension of repayment period, rescheduling of loans and exemption in electricity and communication tariffs to the most affected industries, businesses and public transport
The committee has urged the government to make arrangements to provide cash relief to the disabled, old, helpless, pregnant women and the sick who cannot do the labor. Those who have lost their jobs and are able to work should be linked to relief and employment. This year’s gross domestic product is estimated to be around Rs. 37.67 trillion. If 5 percent relief package is brought, it should be brought equal to Rs. 188 billion.
The committee submitted its report to the Ministry of Finance, National Planning Commission, Natural Resources and Finance Commission, Nepal Rastra Bank and others on Thursday. Priority has also been set for the formulation of the budget for the coming year by allocating titles including labor management, rehabilitation of small, home and large scale industries.
Finance committee concludes that the government should provide policy and financial relief to sustain the area affected by COVID-19. It has also suggested implementing the recommendation of the Public Expenditure Review Commission and adopting austerity in expenditure. The committee has also directed the government to determine the planning bank, determine the criteria of the projects to be operated at the state and local level, implement the budget from Shrawan, make easy payment arrangements, monitor, evaluate and make arrangements for penalties and rewards.
The committee has made a suggestion that the budget for the coming fiscal year should be around Rs. 17 trillion by managing and guaranteeing the budget resources. Referring to the fact that the budget of this issue could be brought before the commencement of COVID-19, the committee stressed on the need to provide relief to keep the economy afloat and also to give continuity to the ongoing plan.
Also, it has suggested to allocate at least 10 percent of the budget for the control and treatment of Covid-19. The committee also said that emphasis should be laid on coordination between the federal, state and local levels and construction of infrastructure. The report also points out that Nepal’s industries need to be encouraged to compete with imported drugs.
The committee has also asked for a program to provide employment to at least 3 million youths. It has concluded that the youths returning from abroad should be made entrepreneurs by arranging concessional loans according to their skills and a policy should be brought to displace the foreign workers working in Nepal. It has also been suggested to attract non-resident Nepalis to invest in Nepal, to create an environment where more than 100 employed and closed industries can be re-operated by giving special discounts on taxes, electricity, etc.
